Effective April 1, 2013, new median income data will be used for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy proceedings. Remember that means testing is based on household size. In Michigan, here is the new data: 1 – $45,029; 2 – $52,621; 3 – $61,715; 4 – $73,864* *For cases filed on or after April…
Archives for March 2013
Michigan Periodic (Wage) Garishments are Extended to 182 Days!
The Michigan legislature changed the law on wage garnishments. Effective September 2012, a writ of garnishment for wages, salary, commissions or other earnings remains in effect for 182 days. Keep in mind that the Automatic Stay provision of both Chapter 7 and Chapter 13 Bankrtuptcy law, stops garnishments immediately upon filing the petition. And under…
What is a “Transfer” and how does it affect your “Chapter 7 Bankruptcy”?
With every initial consultation, I always ask about whether you transferred any interest in any property. What I am really trying to find out is whether or not your engaged in what is known as a “fraudulent transfer.” Under §548 of the Bankruptcy Code, a transfer is defined as any of the following: 1. The…
Must a Motion requesting an Order of Abandonment under Code § 554(b) be served on all creditors and will the Order be Revoked is Propert Service was not Given?
Yes. When a creditor or other interested party seeks an order from the court abandoning property from the bankruptcy estate under Code § 554(b), Bankruptcy Rule 6007(b) supplies the mechanism for the party to obtain that order. The rule provides that the party’s objective can be accomplished only by “fil[ing] and serv[ing] a motion requiring…
Can a Chapter 13 Claim may be valued under Code § 506(a) when no proof of claim has been filed?
Because Code § 506(a) states that “[a]n allowed claim of a creditor secured by a lien on property in which the estate has an interest … is a secured claim to the extent of the value of such creditor’s interest in the estate’s interest in such property,” a claim may be valued under § 506(a)…
Can a Claim may be “provided for” in a Chapter 13 plan be Discharged even where no proof of claim is filed?
Yes, according to a recent decision from the ND of Illinios, the Court reld on the 10th Ciruict holding in In re Dixon, 218 B.R. 150 (10th Cir. B.A.P. 1998). The Illinois Bankruptcy Court held that a claim that is treated in the debtor’s plan will be “provided for” in the plan and discharged under…
What Chapter 13 provision allows for the “stripping” of unsecured liens? And, when is the lien actually stripped?
Chapter 13 debtor may strip unsecured lien under Code § 1322(b)(2), but not § 506(d). Further, stripping an unsecured lien in Chapter 13 requires that debtor receive discharge. A lien cannot be avoided before the Chapter 13 debtor’s discharge is entered.